Delay in major contract for Royal Hobart Hospital development frustrates builders

It has emerged the main building contract for the Royal Hobart Hospital redevelopment has not yet been awarded.

The State Government is being urged not to drag out the reassessment of the $584 million redevelopment.

The Government has suspended demolition and building work while it seeks advice about the project's future, saying it is over budget and behind schedule.

Health Minister Michael Ferguson says the Government had no choice but to call a temporary halt because of Labor's poor handling of the project.

He will not say whether he is committed to the full redevelopment promised by Labor.

The Master Builders Association's Michael Kerschbaum says the delay is not unsurprising given the size of the budget blowout.

But he says it comes at a critical time, with frustration in the way the project is being run by predominantly mainland-based consultants.

"The main contract - being the main build of the contract - hasn't yet been awarded to a managing contractor, and that part of it hasn't been tied down, and I think that's why we're seeing some major delays on the project," Mr Kerschbaum said.

"What we've got is industry locked out of the process to date and I know there is a lot of frustration from within industry for us to be able to take over, provide some decent advice, specially at the local level, and take it on because the managing contractor is the one who has the real say in how things progress and has real impact on budgets.

"We have a number of consultants who are being paid to manage the contract but it is not necessarily in their interests to shorten the contract...it is not in their interests necessarily to accelerate the program or bring things on line.

"We know there is a lot of blockage coming from within the (Health) Department so we are seeing problems all round.. we haven't really to take the bull by the horns."

Mr Kerschbaum is confident the project will go ahead, but fears the redevelopment will not be what was promised.

Labor has slammed the suspension of work which is affecting the construction of a temporary loading dock and demolition works.

It is not clear who is managing the project.

It now appears to be the Health Minister rather than the department's secretary, Matthew Daly.

Doctors fear delays will impact on patients

Doctors warn more delays will increase pressure on staff and patients.

The Australian Medical Association's Tim Greenaway says the hospital's situation is unsustainable and is putting pressure on Emergency Department beds.

"The hospital is full and obviously this is not an uncommon situation currently, because for a long time now the hospital has been running at more than 100 per cent bed occupancy which is unsustainable long term," he said.

"The likelihood is that things may get worse before they get better of course, depending upon what happens with the Royal's redevelopment."

The Nursing Federation's Neroli Ellis says there is an ongoing fight for bed access.

"There's this constant tension in the hospital between who gets the beds, whether its the emergency admission or whether its the elective surgery case."

Some work permits for the redevelopment have been withdrawn and there is no word on when building will resume.

Medicare Local's Tasmanian CEO Phil Edmundson says there is scepticism about the scale of the hospital redevelopment.

"Spending half a billion dollars on a hospital was always a contentious process," he said.